EA Stuffed by NBA

IGN has a report up stating that the NBA has rejected an offer from Electronic Arts to form an exclusive video game relationship with the pro basketball league in the nature of EA's recent deal with the NFL (story). The economics are cited as the obvious reason here: "One of the reasons is that the NBA Live series simply doesn't have a stranglehold on the market the way Madden has for years, so by signing an exclusive deal with EA, the NBA would actually be losing money." The story also lays to rest fears that an exclusive baseball deal is on deck:
Sources aren't quite as clear in terms of potential dealings with Major League Baseball as a few publishers were worried a deal was already in place for EA to step in and take over like they did with the NFL. But after the EA/NFL deal went down, at least one publisher was able to re-up their MLB contract for three more games, so it looks like a false alarm as the only exclusive EA was able to lockup for the time being was the NFL.
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Re: Thank the gods
Dec 21, 2004, 12:18
20.
Re: Thank the gods Dec 21, 2004, 12:18
Dec 21, 2004, 12:18
 
They are just going to lose more money in the long run. [...] So much for competition and creative competition.

No. Actually, EA and the NFL are going to make a lot of money off of this deal, in both the short term and over the long haul. The concept of capitalism is based on the procurement of as much of the economy's available wealth as possible for your own benefit alone, not the benefit of the society which generates that wealth (that's us). This is exactly what EA and the NFL/PLAYERS INC. have done.

Creative competition actually stands in the way of that goal and so it is in their interests to cripple it, which they have also achieved. Diversity in the market may be good for the consumer, but not for those at the top of the corporate hierarchy.

Bottom line, your notion that the NFL actually stands to suffer financially is absurd.

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